Deutsche Börse reports 20% Y/Y increase in revenue in Q2 2023
Deutsche Börse Group has just published its half-yearly financial report 2023 including the figures for the second quarter.
Net revenue increased by 20 per cent to €1,220.6 million in the second quarter (Q2/22: €1,017.8 million). Secular net revenue growth accounted for 6 per cent, which benefited from market share gains and product innovations in the Trading & Clearing segment as well as the acquisition and expansion of customer relationships in the Data & Analytics segment.
Net revenue also included an extraordinary effect from the reimbursement of legal costs in the amount of approximately €11 million (Trading & Clearing segment, Financial derivatives). Net revenue from the same period last year also benefited from a positive one-time effect of €13 million resulting from the deconsolidation of Tradegate Exchange GmbH (Trading & Clearing segment, Cash equities).
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased accordingly by 25 per cent to €733.0 million (Q2/22: €584.9 million). Earnings from financial assets included in EBITDA declined due, amongst other factors, to valuation effects from minority interests to €–15.6 million (Q2/22: €–0.8 million).
In the course of the acquisition of minority interests from the acquisition of ISS and the planned bundling of expertise in the Data & Analytics segment, one-off adjustments to the valuation of a contingent purchase price component resulted in losses of €9 million.
Depreciation, amortisation and impairment expenses amounted to €90.0 million (Q2/22: €81.6 million). This includes purchase price allocations for acquired companies totalled €29.1 million. The financial result improved to €–10.3 million (Q2/22: €–25.7 million), whereby the financial result in the same period last year was significantly influenced by the formation of interest provisions for expected tax payments.
In the second quarter of 2023, net income attributable to Deutsche Börse shareholders amounted to €443.2 million (Q2/22: €341.1 million), a year-on-year increase of 30 per cent. Basic earnings per share amounted to €2.41 (Q2/22: €1.86) for an average of 183.7 million shares. Earnings per share before the effects of purchase price allocation (cash EPS) stood at €2.52 (Q2/22: €1.98).
Gregor Pottmeyer, Chief Financial Officer of Deutsche Börse AG, commented:
‘The result in the first half of the year was well above our expectations. In addition to the ongoing secular growth, the ever-increasing interest rates have further spurred our business. We expect to exceed our targets for the current financial year.’
On the status of the SimCorp acquisition, Pottmeyer commented:
‘Since the announcement in April, we have received a great deal of positive feedback from all sides. With the exception of the EU Commission’s filing process, all regulatory approvals have already been granted. This means we are right on schedule.’